Unearned Discount


Also found in: Acronyms.

Unearned Discount

A finance charge a lender assesses at the beginning of a loan, but only recognizes as income gradually over the loan's life. In accounting, the unearned discount is listed at first as a liability on the lender's balance sheet, but is slowly recognized as income.
References in periodicals archive ?
An automated business-rule capability with algorithm-based problem detection and exception-based reporting can monitor and highlight those exceptions likely to result in late pays, chargebacks or unearned discounts.
Using technology to trim revenue and receivables leakage: progressive companies are using a combination of order-to-invoice quality and collections automation technologies to arrest this growing source of profit erosion
Moreover, the dissent refused to accept the promissory note as a mere collection mechanism for unearned discounts. It found that a liquidated damages clause in the supply agreement provided a remedy for its own breach, which demonstrated that the repayment obligation under the promissory note remained independent of (albeit linked to) the supply agreement.
Uncertainty governs advance trade discounts
* Unauthorized or unearned discounts given on sales orders,
Driving financial process improvement: continuous monitoring can catch common transaction errors and control violations that a manual review might miss
Let's begin with the principle, that what we might call indirect or unintentional promotional funding (slotting allowances, abuse of unsaleables policies, unearned discounts, deductions and all the other dark demons of the 1980s and 1990s), which ought not to be the basis of profitability.
Why not stand "reality" on it's head? Perhaps it is time we ask the hard questions and, at the same time, prepare ourselves for those hard and sometimes awful answers. (Fast Forward)
Do unearned discounts age out in the reporting of DSO?
Practical "best practices" to integrate benchmarking into the credit department
If left unchecked, your company could be losing millions of dollars a year with these unearned discounts.
Prevent what you can, manage what you can't: the role of technology in deductions and dispute management
* Coding, tracking and rolling up deductions or unearned discounts is impossible.
The need for autocash in the collection and deduction process
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